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Saturday, December 31, 2016

Drafting a last will and testament is something we only hope to
do one time. Creating a document that specifies our wishes after our
deaths can cause some anxiety in that we are reminded of our mortality,
but more than that making changes to a will can cause headaches if not
done correctly. You also risk voiding your will under certain
circumstances. In order to keep your friends and loved ones from
inheriting any headaches along with your estate, it is important to know
exactly what events can void your will.

If your will is judged
void after your death, it opens the door to any number of disputes
between family and friends as they argue over dispersing your assets.
Charities you wished to benefit from your generosity may not receive the
funds you set aside for them, and even your burial plans may be
altered. It is important, therefore, to make sure you following
everything to the letter. Here are a few situations that could lead to
voiding your will.

1) You make unauthorized changes. When you
complete a will, it is typically signed and witnessed, and notarized. If
you make written additions or deletions anytime after that period,
somebody could contest the validity of the will and cause problems. If
you want to make corrections after the legalities are complete, you can
either destroy the current will and start over, or draft a codicil to
accompany the will you current have.

2) You were not of sound mind
when you wrote the will. Some people may be pressured or heavily
encouraged to draft a document in order to bring peace of mind for your
family. However, a will written under duress or other influence could be
proven invalid if somebody believes you were not of sound mind at the
time. You want to make it perfectly clear that your wishes are your own,
and that you have not been forced to write anything you didn't want to
write.

3) Changes in marital status. Depending on the laws in your
state, a will drafted before a legal marriage or divorce could allow a
party to contest your will if you do not have it changed. If you have a
will ready and decide to marry or remarry, speak with your attorney
about what needs to be done to ensure your wishes are kept intact.

Take care to know what factors could render your last will and testament void.

Tuesday, December 27, 2016

Rental property owners are entrepreneurs. And as entrepreneurs,
their primary goal is to maximize profit. One of the most basic steps in
maximizing profit is to minimize costs and other liabilities. Recently,
the up and coming trend of protecting one's personal assets from the
liabilities of a rental business is to set up an LLC over the rental
properties. With this LLC, the rental property owner's personal
property, like home, car and other assets, are protected from the
unpredictable demands of owning rental property. There are also other
benefits of an LLC for rental property owners.

Personal property protection

First
of, what is an LLC? LLC stands for Limited Liability Company. Without
the LLC, business owners are liable for damages and other losses from
their business even with their own personal assets.

To illustrate,
a sole-proprietor will have to pay for anything and everything that
deals with his business out of his own pockets. He can never interpose
that his business is bankrupt when he still maintains a personal bank
account, his own car and his own home. His personal assets will have to
answer for the deficiency. Corporate shareholders do not have this
problem because they are protected by the law on corporations that
shareholders are only liable for losses out of their corporate shares,
hence, their personal property is protected and remains untouched by any
corporate liability. The downside of forming a corporation though is
that the process itself is meticulous and profits will have to be shared
with a handful of shareholders.

LLC combines the ease of being a
sole-proprietor with the potential of earning huge profits all by
yourself and the protection to personal assets that corporations offer.
Personal property protection is the most basic and primary of the
benefits of an LLC for rental property owners.

Tax advantages

Another
of the benefits of an LLC for rental property owners is the tax
advantages. Has even better tax treatment than when in a corporation. A
corporate shareholder in essence will have to pay taxes twice. First,
when the corporation itself pays its taxes, and second when the
shareholder has to pay his own tax from the income derived from the
corporation. An LLC is not taxed as a separate entity. The property
owner will only have to pay his taxes once, upon his receipt of the
income from the rental property. Also, the net loss in the LLC can be
declared as a personal deduction for the property owner!

Be a professional by name

Real
estate laws require one to spend a certain number of hours in real
estate activities to be called as professionals in the real estate
industry. But being in an LLC, these requirements are cut in as much as
half!

An LLC may be obtained for separate properties

Another
of the great benefits of an LLC for rental property owners is that a
different or separate LLC may be obtained for each and every property.
Why is this beneficial? Because when an investment is sued covered by an
LLC, all the properties belonging to that LLC will stand liable for the
suit. Covering separate properties with separate LLCs will only make
the specific property or investment liable for the claim it is sued for.

These
are only the basic benefits of an LLC for rental property owners. And
these are already enough to convince any serious business-minded
property owner, what would a more detailed study of the benefits do?
Start protecting your own personal property and increasing your profits
all in the same time. Get an LLC now!

Monday, December 26, 2016

It is a court process that helps appoint a person to protect and manage the financial affairs and/or the person's daily life due to being disabled. To become a conservator either the party intending to be the conservator or another loved one responsible for the adult will petition the court to appoint the conservator.

Conservatorship can be both expensive and time consuming. This process can be avoided by doing a simple Financial Power of Attorney which takes minutes and is low cost. A guardianship may be needed also for the disabled person. The same person or a separate person can be named by the courts. The cost rises if both processes are needed.

Saturday, December 24, 2016

Do you think you need a Power of Attorney? If you think so then
don't put it off and take any chances in the future. You need the time
now to think about whom you can truly trust and at this point in your
life you may find it hard to eliminate some of your closest family
members or dearest friends. Just consider this, you are now mentally
stable and it should be more simple to make those decisions now, than it
would be in the future when maybe you don't have all of your mental
powers with you. Now is the time to safeguard your future financial
affairs and secure your assets.

Most of us have the wrong
impression of Power of Attorney, we think that only the elderly need one
or people with large massive fortunes. Please don't be mislead, we all
should consider a Power of Attorney. You will have a form of peace of
mind knowing should something happen to you; you will be taken care of
legally. You want someone you can trust to look out for your matters.

The
vital importance of a Power of Attorney could best be demonstrated by
the fact if you should happen to contact a disabling disease which could
render you incapable of making your own decisions. Should you have to
be hospitalized, you want someone to pay your mortgage and take care of
your banking needs; you don't want to loose all that you have worked
hard for. A Power of Attorney can protect you legally with the local
laws.

The laws are very much in your favor should you ever become
incapable of taking care of your affairs. With a Power of Attorney in
force, the courts will then step in and use their discretion on who will
be in charge of all your affairs. The judge may appoint someone you do
not fully trust, so you want to have full control and that is why it is
so important to have a Power of Attorney.

So as a good suggestion,
the best time for a Power of Attorney is NOW! You want to be protected
now, you don't want to wait until it is to late and you don't have the
power to help yourself.
So having said that, for your sake, please consider looking into the Power of Attorney aspect for your life.

Thursday, December 22, 2016

Most small business owners in the United States operate as a sole
proprietorship, the default business entity. While this may work for
some businesses for some time, it does not create any legal separation
between your business and your personal assets. You will face both the
risk of lawsuits and the potential of business debt that you cannot
afford. Operating as a sole proprietorship is a risk that grows with
your business.

If you want to protect your business and yourself forming an LLC is one affordable option that offers many benefits.

What is a Limited Liability Company?

If
you form an LLC, you will create a separate entity that offers
liability protection for owners. Your personal assets like your home and
savings will not be at risk if your business is sued or has debts it
cannot pay, provided you maintain the LLC and meet legal requirements. A
limited liability company provides flexibile management options and it
operates as a pass-through entity by default. This means that forming an
LLC from a sole proprietorship will not change your taxes at all, if
you have one member.

Choosing an LLC may also offer you additional
benefits. You will find it easier to raise capital through investors,
and you have the ability to deduct health insurance premiums. Self
employment tax is based on net income and you can be taxed as a
partnership or a corporation, if you choose.
Because it is very
affordable to form a limited liability company and offers many important
protections, it is the most popular choice for small business owners.

What is a Sole Proprietorship?

Sole
proprietorships have one owner and they are not legal entities. This
means that operating a sole proprietorship offers no distinction under
the law between your business liabilities and assets and personal
liabilities and assets. If there are business debts or a lawsuit that
you cannot pay through business assets, your home, savings and other
assets will then be at risk.

There are benefits to remaining a
sole proprietorship, depending on your situation. Taxes are
straightforward, you do not need to register with the state or file
annual paperwork, and payroll can be much easier to set up. There will
be no compliance issues to worry about, either.

Which is Right for You?

The
choice between a sole proprietorship and LLC depends on your business.
If you have a very low-risk business that does not involve working in
people's homes, offering advice or selling products, remaining a sole
proprietorship may be your best move. This is especially true if you are
very unlikely to incur great liabilities. If you are concerned about
keeping your business and personal finances and assets separate,
however, or you plan to expand or take on debts, it is worth considering
forming a limited liability in your state or in another state.

Tuesday, December 20, 2016

Durable Powers of attorney are an essential ingredient in a complete estate plan, which allow for continued financial management in the event of incapacity. Under a durable power of attorney, an attorney in fact makes financial decisions on behalf of the principal. The attorney in fact can be given broad and sweeping powers. Conversely, powers granted by a durable power of attorney can be limited to particular assets or powers. Accordingly, the level of control given to the attorney in fact should reflect the particular requirements of the estate as well as the principal's comfort with a broad grant of authority. In this article, the author teaches three lessons on effective execution and implementation of durable powers of attorney.

First Lesson: Why would I Need One Now?

The legality of durable powers of attorney stems from the law of agency. Under agency law principals, an individual with capacity may give an agent powers-to contract, to represent the principal or to revoke or amend a trust, for instance. In the case of a non-durable power, the agency terminates upon the principal's incapacity. Durable powers survive incapacity, but the principal must have capacity at the time of execution in order to effect a valid power. Accordingly, executing a durable power of attorney for financial management should be done prior to incapacity.

Waiting until one becomes unable to coherently express one's wishes with regards to financial management decisions is too late, and a court-appointed conservatorship may become necessary. What about the successor trustee designated in my trust, or the executor of my will? Would they be able to step in? Since the principal does not die at incapacity, only an attorney in fact designated under a properly executed power of attorney may step in to make financial management decisions. A last-minute durable power of attorney executed during incapacity would not survive a court challenge, however expensive or damaging the result.

Second Lesson: Consider making the Power Immediately Effective

Often, unwary estate planners will execute "springing durable powers of attorney," which only become effective upon the incapacity of the principal. Incapacity is determined according to a test set out in the power, such as a determination made by a medical doctor or a court rendered decision. But who wants to go through the expense, difficulty, and uncertainty of initiating a legal procedure to determine incapacity? Isn't one of the goals of estate planning to prevent unnecessary expense and delay? Moreover, doctors frequently hesitate to make determinations of incapacity because of liability they may face.

In most cases, a better strategy would be to execute an immediately effective durable power of attorney, which gives an attorney in fact the power to make decisions on behalf of the principal without any finding of incapacity. Many are fearful of an immediately effective power of attorney, reasoning that no one should be given such power over their financial affairs unless they are totally incompetent. If they have such a lack of trust for the attorney in fact, why are they executing a power of attorney in the first place? One would think that even more trust would be required when the principal is incompetent and has little influence over the attorney in fact. Finally, simple measures can be taken to avoid disasters before incapacity. Consider sealing a copy of the durable power of attorney in an envelope labeled "do not open until my incapacity." In addition to oral instructions, this can help to avoid the scenario of a run-away attorney in fact who uses the power of attorney to access financial accounts before incapacity.

Third Lesson: What powers should the Attorney-in-Fact be given?

The powers given to an attorney in fact depend upon the principal's desires and the particular concerns that stem from the types of assets held. The durable power of attorney should be coordinated with the will, trust and advance health care directive to ensure that they do not contradict each other. Namely, should the attorney in fact have the power to create trusts? To rescind or amend existing trusts? Should the attorney in fact have a power to make gifts to himself or to others? These powers can help ensure that preparation for long term care (medical) or tax planning can take place even after incapacity. Before executing a power of attorney, individuals should be fully informed of the powers that they are granting, and the possible consequences of such sweeping grants of power. In all cases, it's best to consult with an attorney who can advise on specific risks.

Conclusion

Durable Powers of Attorney are one of the five essential documents in estate planning discussed in this article series. Unlike a will or trust, which mostly deals with decisions that are made upon one's death, the durable power of attorney deals with life-time financial management and estate planning questions. Individuals should be aware of the risk in waiting to execute the power of attorney; the hazards of "springing" powers; the range of powers that can be given to the attorney in fact; and the risks associated with a sweeping grant of authority to the attorney in fact. --

This article is intended to provide general information about estate planning strategies and should not be relied upon as a substitute for legal advice from a qualified attorney. Treasury regulations require a disclaimer that to the extent this article concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Monday, December 19, 2016

Rene of By the People Document Preparation Service in Fairfield CA talks briefly about the basic differences between Inc. and LLC, and the benefits and features of each. Give Rene or Tammy a call at 707-428-9871 with any questions you may have so they can help you get the right product for your business.

Sunday, December 18, 2016

When someone dies, his or her assets should go through probate.
The probate process includes collecting the deceased's assets, paying
off liabilities and necessary taxes, and administering property to heirs
as per the will.

Probate of decedent's Will

During
this process, authenticity of the deceased's will is to be proved in
the court of law. Will of a deceased must be probated soon after his or
her death. Nobody has a right to hold it back at any cost.
The
decedent's attorney or the person possessing the will of decreased, will
need to produce it immediately, or within the specified time. There are
penalties for destroying or concealing the will.

Probate Proceedings

The
procedure starts only when there is the involvement of an official
executor. If you are well versed with the different kinds of laws that
are involved, then you can submit your application to be the executor on
behalf of the friends or relatives.

The first thing to do here is to file a formal request. The applications
should be submitted in the local court of the same country, where the
deceased lived the last days of his or her life. Along with filing the
probation documents, you should also produce the original death
certificate of the deceased.

After filing the documents in the court, it the next step is to inform
the creditors of the deceased. You can advertise about the probate in
the newspapers, or on any other such local media.

You can let the heirs and beneficiaries of the departed know about the
probate process, by mailing the court notice to their respective mailing
address or by emailing it to them. You will need to document every
notification sent to the successors who are in the line, and submit them
to the court before the probate process commences.

You can complete all the procedures within the nine
months duration, which is after the date of death of your client. There
are many benefits from letting your client know beforehand about what
will happen with his or her possessions after death.

The distribution of property among the beneficiaries will take place
only after clearing off the debts taken by the diseased from different
sources.

The entire process will be completed with transferring of the deceased's possessions to the rightful beneficiaries.

The inheritance money will be handed over to the next
successor in line in many ways such as, funeral expenses, debt and
taxes, family allowances, costs of estate administration, etc.

Saturday, December 17, 2016

Powers of attorney are commonly used instruments, but few people
spend the time to really understand how they actually operate. This
includes attorneys and lay persons. Depending on whether a power of
attorney is considered durable, there are certain events, such as a
principal's subsequent incapacity, which may limit, or restrain an agent
from exercising his or her enumerated powers pursuant to the power of
attorney instrument.

Let's take a look at just some of the events
which can result in a suspension or termination of a power of attorney.
Firstly, if a power of attorney is not durable, meaning it does not
contain certain language referenced by law, the following events will
terminate a power of attorney. 1) principal dies, 2) becomes
incapacitated. Of course a subsequently executed "poa" that explicitly
revokes all previous ones, will also result in its termination.

If
a poa is durable, the scenario mentioned above is a little different.
While the death of the principal still results in termination,
subsequent incapacity of the principal could lead to a multitude of
scenarios. If a petition to determine the incapacity of the principle is
filed, the authorities granted in the power of attorney are suspended
until the petition is dismissed or the court enters an order authorizing
the agent to carry out powers granted to him. Certain powers, like the
authority to make health care decisions for the principal, remain
effective until the Court orders otherwise.

In emergency
situations, if the agent feels he needs to act on the principal's behalf
the agent may ask or "petition" the court to allow him to use powers
which are otherwise suspended, after a petition to determine incapacity
has been filed.

Other issues arise when powers of attorney
conflict with advance directives which the principal may have executed
and which may have given different individuals authority to act on his
or her behalf. These disputes sometimes involve family members, who have
different opinions on what is best for the principal. The law provides
that if an advance directive and a poa conflict, the advance directive
controls, unless a poa is later executed, and expressly states
otherwise.

Friday, December 16, 2016

Are you operating your business as a real business or as a hobby? It's
time to make your business OFFICIAL before the summer push for business!Let me ask you two important questions:

Are you operating your
business under your own name, a DBA or fictitious firm name, basically
as a sole proprietorship or maybe as a general partnership? AND/OR

Are you or your family
at risk because of business or personal assets that are unprotected
from unexpected losses or legal issues?

If you answered YES to either question please read on for important
news about why NOW is the time to form an corporation or LLC for your
business.

Make it Official. Operating
as a sole proprietorship or general partnership sends a message that
you are still "testing" your business, or that you're not sure you'll
really make it. Perhaps your accountant told you that incorporating is
an unnecessary expense or that it won't help you save on taxes due to an
expectation of low profits. This is the WORST marketing message you can
send when you want to attract new clients and partners to your
business, who want assurance that you're about your business and here to
stay.

The Law of Attraction. You
get what you focus on. Testing, hoping and "seeing if things work out
or not" BEFORE you decide to step-up and make your business official by
incorporating broadcasts a clear message to the universe that you're not
really serious about your business or committed to a positive outcome.
The Law of Attraction states that the universe returns not what you wish
for, but what you program into your deepest belief system through your
dominant thoughts, actions and feelings. Making your business official
and really stepping up says, "I am ready to receive!".

Limited Personal Liability. You
may be thinking "I already lost everything in the market collapse from
2008" and still recovering. If you're one of the few that managed to
survive and grow your assets since then, but are still holding them in
your own name, you're playing a VERY RISKY game (similar to those with
assets in unstable European banks). Even if you don't have any assets
right now, a lawsuit or judgment will destroy any credit you are looking
to build in the future PLUS you may be looking over your shoulder for
years waiting for someone to come after you when you finally do start to
turn things around. That's no way to live your life. One lawsuit from
an unprotected business can ruin your chances of getting a personal auto
loan or refinancing your home. Good people who "play by the rules" can
still be sued for the most unexpected reasons. You may be thinking "my
business insurance will help me out" but are you really covered? Even if
your business is never sued, what if you're unable to pay a vendor and
they come after you? Do you want to be personally liable? Put a halt to
greedy people looking to take what you have worked for! This is the best
time to form an LLC or corporation to limit your personal liability.

Reduce Your Taxes. The
bottom line is that operating as a sole proprietorship will cost you
the most in employment taxes (up to 15.3% on earned income up to
$113,700 in 2013). That means that your income will be taxed as the
HIGHEST possible TAX RATE as a sole proprietorship. By the way, filing a
Schedule C (the form filed for earned income from a sole
proprietorship) also means that your business is among those MOST LIKELY
TO BE AUDITED. Why? The IRS has a $300 BILLION tax gap and they believe
the biggest tax cheats are the little business owner like you. Why?
Their stats show them that sole proprietorship are MOST likely to UNDER
report their income and OVER report their expenses (two big no-no's with
the IRS). Operating as an S corporation or LLC taxed as an S
corporation in many situations is a much better approach for two
reasons. You will have part of your profits as distributions which are
NOT subject to the 15.3% employment taxes AND move that profit to
schedule E, not schedule C which is more likely to be audited!

Access More Funding Options. Operating
as a sole proprietorship or general partnership limits you when it
comes to funding options. You are also DAMAGING YOUR PERSONAL CREDIT
SCORE by operating this way. How do you finance your business as a sole
proprietorship? You use your PERSONAL CREDIT cards which will drive up
your revolving debt which will in turn DRIVE DOWN your personal credit
score! When you form a corporation or an LLC you will SEPARATE your
PERSONAL and BUSINESS CREDIT. Yes, any type of cash funding with a
personal guarantee will come into play, but that DEBT does NOT show up
in the personal credit bureau which is HUGE for future funding! As you
form a new LLC or corporation NCP will help (if you choose) to build
your business credit scores quickly and get your business in a position
to secure funding to grow. But the first step is to form a separate
legal entity.

Simply Your Life. Yes,
in fact operating as a sole proprietorship will complicate your life,
not the opposite. Separating your business and personal life will make
it much easier for you to navigate both from a financial and legal point
of view. Now you will have each in its own compartment where it belongs
to protect your overall success.

Asset Protection. Forming
an LLC for your safe assets like investments (those outside a
retirement plan) will help you sleep better at night knowing you don't
have all your "eggs" in one basket. If you are using a LIVING TRUST to
protect your assets that will NOT work and everything in your trust may
be vulnerable. Do you own other businesses that really should be
operating through a separate bank account in a separate entity? Do you
own real estate in your own name that may be sending a message that you
are rich and have assets worth taking? Have you been in business for
years or are you operating more than one business in one entity? Are you
doing some business with a new partner and making the big mistake of
running that revenue through your current business? Avoid these costly
mistakes and form a separate company for that separate business.

Tuesday, December 13, 2016

There are various ground upon which an annulment or a divorce could be granted by a court. The legal consequences could be very important, since an annulment basically erases a marriage, whereas a divorce simply terminates it.

Saturday, December 10, 2016

If someone dies without leaving a valid Will, the person is said to have died intestate - that's legalese for without a will - the property she held in her own name as his or her own separate property passes to the person or persons specified in the laws of the deceased's state of residence, after any bills and taxes are taken care of.

Thursday, December 8, 2016

A living will is the name given to a document in which you can set out the nature and extent of the treatment you would like to receive if circumstances ever arise in which you can't communicate, perhaps because of a stoke, or coma. In your living will you can express a desire for extensive and heroic treatment to keep you alive, no matter what, regardless of the circumstances.

Wednesday, December 7, 2016

Rene of By the People in Fairfield CA gives a short overview of their services and the number of legal documents they can help with. For questions, call Rene or Tammy at 707-428-9871 and you can visit their website at http://www.bythepeopleca.com

Tuesday, December 6, 2016

If you manage your property remotely and use a local trusted
friend or family member to handle the rental issues for you, you need a
contract or a power of attorney. It is a contract involving the details
on the work and the compensation in return. It should also define what
happens in the case the contract is breached.

With a power of
attorney, you grant the person permission and authority to make
decisions on behalf of you. Your power of attorney is like a backup and
you can revoke it any time you want.

The power of attorney can be
very general or specific. To protect yourself, you should always use a
limited power of attorney. A good limited power of attorney document for
a rental property should specify the expiration date, the property on
which it is authorized, and acts permitted. You can customize this
according to your needs.

For an ongoing property management
purposes, you can specify the expiration date for a year or two. On the
other hand, if you are on vacation or just want your power of attorney
to sign the lease with the tenant, you can set the dates for a shorter
period of time.

You also want to restrict the properties your
power of attorney has the authority on by specifying the address of the
property. Or if you allow him/her to act on all the rental properties in
a city or state, you can put this in the document.

Other
important things to spell out in the power of attorney are the kinds of
delegations you grant. You might allow your power of attorney to lease
the property only, but not collect future rent payments for you. You
might give the power to them to furnish the property or adjust the rent
or not. It is entirely up to you to decide how much or little power you
grant to your power of attorney.

Sunday, December 4, 2016

Rene at By the People talks about Deeds of trust and how they can help people make the necessary changes to their title for a number of different reasons. Call 707-428-9871 with any questions, and visit the website at http://www.bythepeopleca.com

Saturday, December 3, 2016

Consider this scenario. You are in a hospital with a terminal
illness, unconscious, connected to all kinds of medical machines, and
has a very poor prognosis. Who will speak on your behalf during this
time of illness? Who would tell the doctors, the nurses and your family
members what your medical wishes are if ever you get into this terminal
condition? Who would let your caregivers know what you would like to
happen to you and your body in such a condition like this? Would you
like to be kept alive by all means? Or would you rather decide not to be
subjected to futile treatments knowing that this is not a dignified
living for you? But how would you let everyone know all these wishes now
that you are no longer capable of speaking up for yourself?

This
is why Advance Health Care Directives (AHCD) are very important. As a
clinical counselor working in a hospital for several years now, I have
personally worked with families and witnessed them break apart because
they could not agree in making medical and end-of-life decisions for the
dying loved ones. Their loved ones, who were unable to speak up for
themselves, did not have an advance directive. Remember the Terry
Schiavo case?

I have witnessed many cases where, because patients
did not have an AHCD, families and caregivers are plagued with guilt and
have constantly asked themselves if they were making the "right"
decision for their loved one or for themselves. Yet, I have also
witnessed many cases where, because patients had an AHCD, their families
and caregivers felt at peace, in spite of the pain, just because they
knew they were honoring their loved one's medical wishes as reflected on
their AHCD.

WHAT ARE ADVANCE HEALTH CARE DIRECTIVES (AHCD)?

AHCD are legal documents that enable you to do the following:

1.
Appoint or designate a primary and secondary power of attorneys for
health care whom you trust to speak on your behalf and honor your
medical wishes in an event that you could no longer speak up for
yourself.
2. Appoint a primary physician whom you trust to be your doctor or caregiver.
3. Make your end-of-life wishes known.
4. Make your wishes known regarding organ donation.
5. Make your wishes known regarding pain control.

For
an AHCD to be legal, it has to be signed by you (the person creating
the document) before two witnesses. These witnesses could not be your
designated power of attorneys or your immediate family members or your
health caregivers where you receive medical care. Close friends or
distant relatives could be witnesses. If you cannot find witnesses, the
document could be notarized by a notary. The notary can only notarize an
advance directive if you have a valid photo ID (e.g. driver license or
passport). This process applies particularly in California. Other states
may have different processes.

I would also like to mention that a
Living Will is a kind of AHCD. Likewise, an AHCD could also be known as
"Durable Power of Attorney for Health Care."

WHAT DO YOU DO WITH YOUR ADVANCE HEALTH CARE DIRECTIVE?

Once
you created your AHCD, you keep the original and remember to keep it in
an accessible place in your home. If possible, make several copies to
give to your designated power of attorneys, your primary physician and
to your hospital. I strongly encourage people to always bring a copy
with them whenever they go to the hospital so that the hospital will not
only have a copy of your document but also will know and honor your
medical wishes. While creating an AHCD is not mandatory, it is a Federal
Law that hospitals have to ask patients during their admission if they
have an AHCD.

WHERE CAN YOU GET ADVANCE HEALTH CARE DIRECTIVE FORMS?

Most,
if not all, hospitals have AHCD forms. You can always ask your hospital
if they have available forms. You can also ask your doctor if he/she
has a form. There are many websites now on the Internet that offer AHCD
forms. Just do a search on "Advance Health Care Directives."
I
believe that your completed (properly witnessed or notarized and signed)
AHCD is legally recognized in states other then your own. However,
since each state may have its own froms and probably laws on AHCD, the
best thing to do is to always bring an extra copy with you when
traveling.

WHO CAN FILL OUT AN AHCD?

Many
folks think that an Advance Health Care Directive is only for patients
who are terminally ill. Not so. Any competent adult, 18 years old and
above, can fill out an AHCD. I remember dealing with the family of a 20
year old woman who ended up on a persistent vegetative state (PVS) as a
result of a car accident. Her parents ended up divorcing just because
they could not agree as to what to do with her in her grave condition.
The mother believed that her daughter loved life so much that she would
not like to be living in such a terrible medical condition where there
is no dignity of life any longer. The father thought otherwise. This sad
break-up of a family would have not happened if, even at early age,
their daughter had an advance heatlh care directive.

I strongly
encourage you to talk to your physician or family members about this
difficult yet very important subject. I just hope that this article has
been a source of help.

Friday, December 2, 2016

A limited liability company (which is commonly abbreviated as
LLC) offers limited liability to its owners as a legal form of business
company in the United States. Many small business owners are drawn to
this type of business formation because it offers limited liability for
the actions and debts of the company. This type of business formation
excludes personal liability from the general debts and other obligations
of the company and limits the liability of the owners to the extent of
their equity. An LLC has characteristics of both a partnership and
corporation; the primary partnership characteristic is the availability
of pass-through income taxation while the primary corporate
characteristic is limited liability.

Many entrepreneurs choose to
setup an LLC for tax reasons. LLCs avoid "double taxation" because the
income of the LLC itself is not taxed at the company level. Instead,
taxes on profits and deductions of losses are computed at the individual
level on the personal tax return of each LLC member (owner). LLC owners
can elect for the IRS to tax the LLC as a sole proprietorship,
partnership, C Corporation, or S Corporation. Owners make this election
through the IRS after the company forms with the state.

After
setting up an LLC, the bottom-line profit of the business is not
considered to be earned income to the members, and therefore is not
subject to self-employment tax. But it is still important to consider
that the managing member's share of the overall profit of the LLC is
considered earned income, and is subject to self-employment tax.

Members
of an LLC are compensated using either guaranteed payments or
distributions of profit. Guaranteed payments represent earned income to
the members, which qualifies them to enjoy the benefits of tax-favored
fringe benefits. A distribution of profit allows each member to pay
themselves by merely writing checks. However, as a member of an LLC, you
are not allowed to pay yourself wages.

Another important perk of
setting up an LLC is that the managing member of an LLC can deduct 100
percent of the health insurance premiums he pays, up to the extent of
their pro-rata share of the LLC's net profit.

The basic steps to setting up an LLC are fairly simple:

Step 1: Find a copy of the LLC Articles of Organization Form for your state. This
is usually located at the Secretary of State's office. It is also a
good idea to check there are any rules concerning business names in your
state.

Step 2: Choose a name for your business. Almost
any name will work so long as it is not the same or deceptively
similar to a name being used by another entity that is filed with the
State Filing Office which is usually the Secretary of State's Office.
The name must end with the words Limited Liability Company or an
abbreviation such as LLC or L.L.C. The ending such as LLC or Inc is not
considered part of the name when searching for availability.

Step 3: Complete and File the Articles of Organization form with the State Filing Office.
The State Filing Office where you turn in the form is usually the
Secretary of State where you are required to pay a filing fee. The
Articles of Organization form is a relatively simple document that
includes the name of your business, its purpose, office address, the
registered agent who will receive legal documents, and the names of each
initial member of your proposed LLC. A registered agent is simply a
person or incorporated company who can accept service of legal papers if
your company is sued or the person who can receive mail from the State
Filing Office. You can act as your own registered agent, however, the
address you use must be a street address and not a P.O. Box. The address
is important to make sure you receive papers that are served or sent to
your company.

Step 4: Submit a notice to your local newspaper for publishing.
This step is sometimes required by your state, you may want to check to
make sure. Some states even require this step to be done before filing
your Articles of Organization form. This notice should detail your
intention to setup an LLC.

Step 5: Prepare and Sign an Operating Agreement.
This is not required by the state but is a very important step in
maintaining your liability protection and preventing disagreements
between the members. The Operating Agreement is an essential document
which sets forth the rights, duties and obligations of each member of
the LLC. It also usually sets the ownership percentages between the
members, the division of profits and the distribution of income. This
document can also strengthen your liability protection by demonstrating
that you have completed the organization of the company and are in
compliance with the process.

The State Filing Office usually does
not provide Operating Agreements, this will be something that you have
to come up with. Many people use online services such as
settingupllc.com, and other people go further and hire attorneys which
can be much more expensive.

Step 6: Obtain an Employer ID Number (EIN) from the IRS.
As a separate legal entity, your LLC requires its own federal tax
identification number from the IRS. This can sometimes be avoided if an
LLC is owned by only one person, in which case the person has the option
of reporting taxes on his own social security number. To get the
Employer ID Number you can acquire from SS-4 from most post offices and
then file it with the IRS.

Step 7: Setup a Separate Bank Account for the LLC.
A separate legal entity requires a separate bank account. It is
important that you do not co-mingle your funds between business and
personal bank accounts. The courts will look at this if you were to ever
get sued.

Step 8: Document Ownership Interest Percentages of the LLC.
To avoid disputes and ownership conflicts in the future, it is
important to assign ownership percentages when the company is first
formed. This step is not necessarily required, but it would be very
wise.

Thursday, December 1, 2016

California estate planning is essential for residents of the
Golden State. Basic strategies should encompass executing a last will
and testament; establishing a healthcare proxy; and designating power of
attorney rights. Dependent on estate value, establishing a trust can
further protect inheritance assets.

California estate planning
strategies must comply with state and federal laws. California has some
of the most complex probate laws in the country, so it is best to work
with a qualified estate planner or probate attorney.

Probate is
used within the US to settle estates that are not protected by a trust.
The process varies depending on if decedents engaged in estate planning
procedures prior to death. When individuals die without leaving a Will,
the estate settlement process requires additional time and exposes the
estate to a higher level of creditor claims or the potential for heirs
to contest the Will.

The last will and testament provides
directive as to how estate assets should be distributed. It is also used
to appoint a personal representative charged with duties required to
complete estate settlement process. Without these written directives,
the estate must be settled according to California probate code.

The
timeliness of estate settlement depends on various factors. One of the
most prevalent is estate value. In the state of California, estates
appraised with values of less than $100,000 are usually exempt from
probate if a legal Will has been executed and filed through court.

The
estate must undergo a 40-day waiting period to avoid probate.
Afterward, the personal representative must present a legal affidavit to
the court before distributing inheritance gifts to designated
beneficiaries.

When decedents do not leave a Will the estate is
required to undergo a probate proceeding to determine rightful heirs.
This is particularly important to understand if California residents do
not want to bequeath gifts to direct lineage relatives. In order to
disinherit relatives the Will must include a disinheritance clause which
states the reason why heirs are not entitled to estate assets.

The
purpose of including the disinheritance statement is to minimize risks
of heirs contesting the Will. It is not uncommon for disinherited
relatives to claim the decedent was under the influence of another
person or was of unsound mind.

Contesting a Will can freeze assets
in probate for months on end. This act can force personal
representatives to sell inheritance assets to cover legal expenses.
Defense fees can easily bankrupt small estates and leave nothing for
designated beneficiaries.

In addition to protecting assets,
California estate planning is the most effective strategy for
establishing healthcare proxies. This document allows individuals to
document the type of medical treatment they do or do not want to have if
they are incapable of making decisions due to illness or injury.
Healthcare proxies include 'Do Not Resuscitate' (DNR) orders, as well as
providing directives regarding life support and delivery of nutritional
intravenous feedings.

Estate planning is also used to grant Power
of Attorney rights. POA is an important decision that should not be
taken lightly. The person granted with POA powers should be someone who
can be trusted to make smart financial decisions, and make difficult
decisions on your behalf if you become incapacitated.

Establishing
California estate planning strategies is one of the best gifts to leave
loved ones. Without written directives, decisions surrounding your
estate will be left to the courts and chances are they won't be what you
would have wanted. Additionally, putting affairs in order can reduce
family discord and allow for efficient distribution of inheritance
gifts.